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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost ints per Month Cost per Car Washed Cleaning supplies Electricity Maintenance $0.60 $1,300 $0.07 $0.10 eBook Wages and salaries Depreciation $4,800 $0.20 $8,200 Rent $1,900 Administrative expenses $1,500 $0.01 Print For example, electricity costs are $1,300 per month plus $0.07 per car washed: The company expects to wash 8,400 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,500 Revenue $53,340 Expenses: Cleaning supplies 5,540 Electricity 1,858 Maintenance 1,080 Wages and salaries 6,848 Depreciation 8,200 Rent 2,100 Administrative expenses 1,484 Total expense 27,102 Net operating income $26,238 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,500 Cars washed P Revenue S 53,340 Expenses Cleaning supplies 5,540 Electricity 1.858 Maintenance 1.080 Wages and salaries 6,840 Depreciation 8.200 Rent 2,100 Administrative expenses 1.484 Total expense 27.102 Net operating income $ 26,238 Flexible Planning Budget Budget

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost ints per Month Cost per Car Washed Cleaning supplies Electricity Maintenance $0.60 $1,300 $0.07 $0.10 eBook Wages and salaries Depreciation $4,800 $0.20 $8,200 Rent $1,900 Administrative expenses $1,500 $0.01 Print For example, electricity costs are $1,300 per month plus $0.07 per car washed: The company expects to wash 8,400 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,500 Revenue $53,340 Expenses: Cleaning supplies 5,540 Electricity 1,858 Maintenance 1,080 Wages and salaries 6,848 Depreciation 8,200 Rent 2,100 Administrative expenses 1,484 Total expense 27,102 Net operating income $26,238 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,500 Cars washed P Revenue S 53,340 Expenses Cleaning supplies 5,540 Electricity 1.858 Maintenance 1.080 Wages and salaries 6,840 Depreciation 8.200 Rent 2,100 Administrative expenses 1.484 Total expense 27.102 Net operating income $ 26,238 Flexible Planning Budget Budget

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost ints per Month Cost per Car Washed Cleaning supplies Electricity Maintenance $0.60 $1,300 $0.07 $0.10 eBook Wages and salaries Depreciation $4,800 $0.20 $8,200 Rent $1,900 Administrative expenses $1,500 $0.01 Print For example, electricity costs are $1,300 per month plus $0.07 per car washed: The company expects to wash 8,400 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,500 Revenue $53,340 Expenses: Cleaning supplies 5,540 Electricity 1,858 Maintenance 1,080 Wages and salaries 6,848 Depreciation 8,200 Rent 2,100 Administrative expenses 1,484 Total expense 27,102 Net operating income $26,238 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,500 Cars washed P Revenue S 53,340 Expenses Cleaning supplies 5,540 Electricity 1.858 Maintenance 1.080 Wages and salaries 6,840 Depreciation 8.200 Rent 2,100 Administrative expenses 1.484 Total expense 27.102 Net operating income $ 26,238 Flexible Planning Budget Budget
Transcribed Image Text:Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost ints per Month Cost per Car Washed Cleaning supplies Electricity Maintenance $0.60 $1,300 $0.07 $0.10 eBook Wages and salaries Depreciation $4,800 $0.20 $8,200 Rent $1,900 Administrative expenses $1,500 $0.01 Print For example, electricity costs are $1,300 per month plus $0.07 per car washed: The company expects to wash 8,400 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,500 Revenue $53,340 Expenses: Cleaning supplies 5,540 Electricity 1,858 Maintenance 1,080 Wages and salaries 6,848 Depreciation 8,200 Rent 2,100 Administrative expenses 1,484 Total expense 27,102 Net operating income $26,238 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,500 Cars washed P Revenue S 53,340 Expenses Cleaning supplies 5,540 Electricity 1.858 Maintenance 1.080 Wages and salaries 6,840 Depreciation 8.200 Rent 2,100 Administrative expenses 1.484 Total expense 27.102 Net operating income $ 26,238 Flexible Planning Budget Budget
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